GameStop raises $1.1 billion in latest share offer

GameStop is again cashing in on its high-flying stock. The videogame retailer said Tuesday it has raised more than $1 billion in its latest share offering.

The company said it’ll use the proceeds for general corporate purposes and invest in growth initiatives as it tries to pivot to e-commerce. This offering adds to the half a billion dollars it had raised in late April.

The trading frenzy over GameStop began in January when retail investors began piling into stocks that were hyped on social media, driving up their share prices and trading volumes. GameStop shares have catapulted almost a thousand percent this year.

It became the poster child of the “meme stock” phenomenon that pitted small-time traders against big hedge funds that were betting the stock price would drop. The Financial Times reported Tuesday that one London-based hedge fund that suffered losses betting against GameStop is shutting down.

GameStop - as a company - faces an uphill battle as more consumers download or stream games. The company's sales have fallen for nine straight quarters.

Another meme play, movie theater operator AMC Entertainment, has also taken advantage of the stock boom, completing two share issues in three days this month. Oil producer Torchlight Energy Resources, whose shares have shot up ten-fold this year, has increased its share offering by $150 million.